File ITR, invest & save upto
₹46,800 in taxes on the go
0% commission • Earn upto 1.5% extra returns
Reviewed by Jul 30, 2021| Updated on
Investment ideas are referred to as those distinct plans of action which will allow individuals to invest and generate returns in an effective manner.
In the same line, investor-targeted investment portfolios are offered by professional portfolio managers. These portfolios are more of an investor-oriented investment strategy, and it focuses on a specific approach.
An investment idea, coupled with a strategic approach, is the first step towards making any investment decision. Depending on the investment plans laid out by investors, i.e. if it is a short-term or a long term financial goal, financial advisors can help in building the right road-map for effective investing.
Financial portfolio managers make use of various tools, such as the modern portfolio theory and asset class risk, to achieve the same.
Asset classes and the risk associated with the same play a huge role in the construction of an ideal investment portfolio. While investors whose financial goal is to invest for retirement, they chose to invest in asset classes with low risk.
Aggressive investors, on the other hand, opt for asset classes with higher risk and higher exposure to equities in their portfolio. Investors can find the right investment plan and options once they have decided on the asset classes and the risk profile.
The modern portfolio theory focuses on how risk-averse investors can create an ideal portfolio by diversifying their investments across various asset classes with different risk tolerances. This will help investors generate the best possible returns with respect to its inherent risk.